Ben Saw a Half-Hour TV Show with George Foreman on It

question 27

Multiple Choice

Ben saw a half-hour TV show with George Foreman on it. During the show Foreman was showing how to prepare a variety of foods so that they would be totally fat-free. Each item was prepared using a special cooker. During the show the TV audience were given several opportunities to buy the cooker. Ben was watching:

• A) direct selling
• B) a sales promotion
• C) an infomercial
• D) outbound telemarketing
• E) interactive electronic retailing

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Definitions:

Output Effect

The impact on total production that occurs when a firm modifies the price of its good, influencing the quantity sold and altering the firm's output level.

Purely Competitive

A market structure characterized by a large number of small firms producing identical products, with easy entry and exit from the market, leading to no single firm having control over market price.

Wage Rate

The compensation paid to employees for their labor, typically expressed as an hourly, daily, or piece rate.

Variable Input

A factor of production whose quantity can be changed easily and quickly in the short run to increase or decrease output.